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History of the Gender Wage Gap in New Zealand

gender wage gap In “one of the most substantial moments for gender equality in New Zealand in decades,” the Equal Pay Amendment Bill was passed by the New Zealand parliament and took effect in November of 2020. This legislation intends to address pay equity, advance previous work toward pay equality and address the gender wage gap. Rather than just addressing gaps between men and women’s wages in the same professions, this bill targets differences between wages in female-dominated professions as compared to male-dominated ones.

How Equal Pay Addresses Poverty

Addressing gender wage gaps is key to fighting global poverty for numerous reasons. Not only do women tend to be in lower-paying occupations, but they also lack employment opportunities. Females are also tasked with two to 10 times the care work (housekeeping, childcare, etc.) than men. Research in developing countries shows that women lose out on $9 trillion annually due to economic inequality. As the number of women in paid work increased between 2000 and 2010 in Latin America, overall poverty fell by approximately 30%.

To truly appreciate this victory in fighting the gender wage gap in New Zealand, we can take a brief journey through the nation’s history of work toward equal pay.

New Zealand’s Work Towards Equal Pay

New Zealand National Tramways Union afforded equal pay to women in 1942. As women entered the workforce during World War II due to the shortage of male workers, the New Zealand National Tramways Union insisted women received the same pay as men. It became the nation’s first union to win equal pay for females working as tram conductors.

Almost two decades later, The Government Service Equal Pay Act was passed in 1960, thanks in part to the lobbying of the Council for Equal Pay and Opportunity (CEPO). The New Zealand government began to investigate equal pay in the country more holistically. The findings of that investigation led to the Equal Pay Act of 1972. This act gave women in both “private and public sectors” equal pay opportunities. By 1985, the gender wage gap diminished by 22%.

During that time in 1957, the collaboration among multiple New Zealand unions including the Māori Women’s Welfare League and the National Council of Women formed CEPO. The group began advocating for equal pay through raising awareness and educating people, political lobbying and more. CEPO was then revived in 1986 as the Coalition for Equal Value, Equal Pay and began work to disrupt male-dominated professions and fight for truly equitable pay for all New Zealanders.

In another effort to move the country toward pay equity as opposed to equality, the New Zealand Government formed the Joint Working Group on Pay Equity Principles (JWG). The JWG developed principles and formal processes through which the government would field pay equity claims.

National Organisation for Women

One of the more structured groups of the women’s liberation movement in New Zealand was modeled after the National Organisation for Women in the United States. Founded in 1972 New Zealand’s National Organisation for Women (NOW) fought not just against the gender wage gap, but for gender equality in all areas of life. This includes legal protections.

Unfortunately, the organization in New Zealand didn’t have the same impact that it did in the U.S. so members decided to help in different ways. Many feminists took to community projects or attempted to tackle the gender wage gap in the corporate world.

New Zealand ranks 6th place in the World Economic Forum’s Global Gender Gap Report for 2020. The Equal Pay Amendment Bill is not only an important step toward eliminating the gender wage gap in New Zealand but a great step toward narrowing gender gaps across multiple national benchmarks. This includes economic, educational, health, or political areas.

Despite a three-year stall in the nation’s gender pay gap, the New Zealand government’s continued focus on equal pay for work of equal value is bound to chip away at that gap and foster poverty reduction.

– Amy Perkins
Photo: Flickr

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The Benefits of Investing in Women

The Benefits of Investing in Women
Gender equality, or rather a lack of gender equality, is not simply a historical problem. To this day, women all around the world face inequality. One of the most notable issues pertaining to gender inequality is the gender wage gap. Its impacts affect not only women but society as a whole. To end the gender wage gap and other inequalities, society must start to recognize the benefits of investing in women.

The Gender Wage Gap Explained

There are two types of gender wage gaps. The controlled wage gap refers to when a man and a woman have the same exact job in the same exact industry with the same exact qualifications. In this situation, as of 2021, women earn 98 cents per $1 that men earn. This seemingly small upfront difference builds up over time, and the pay discrepancy leads to very dissimilar outcomes for these two genders.

An uncontrolled wage gap is the second type. The uncontrolled wage gap refers to the overall difference between men’s and women’s wages. It does not matter what job it is, what industry one works in or if one works full- or part-time. The measurement takes into account how much each worker makes on average per hour each year. This gap is much more prominent—a woman makes 82 cents to a man’s $1 as of 2021.

Companies provide several “justifications” for why women receive less pay than men within the organizations, but actual reasons include employers’ implicit biases, a wage penalty that accompanies motherhood and a higher likelihood of women working part-time. This is based on if women have the opportunity to obtain higher-wage jobs within such companies. Often, women are unable to attend school to receive the qualifications necessary for high-skilled work.

These inequalities in labor compensation become more glaringly obvious when it comes to unpaid labor. Women are more than twice as likely as men to participate in unpaid work. Notably, the most frequent unpaid jobs women take on are domestic work and child care. In impoverished communities, women must sacrifice their education to fulfill the expectation to manage the household and raise children.

The Importance of Investing in Women

Beyond equality, investing in women provides a multitude of economic benefits. The unpaid labor women often take on can actually hinder the economy. Economists estimate that unpaid domestic workers—if paid—could constitute approximately 40% of a nation’s GDP. A lack of education for women also plays a role in stunting economies. When women receive education, economies tap into a whole new sector of individuals that bring new, innovative ideas to the table, which help economies grow. Further, studies show that for every 10% of girls enrolled in school in a developing country, the GDP increases long-term by 3%.

In addition to paying women for labor and educating women, it is imperative to give women advancement opportunities. Women make up approximately half of the agricultural labor force but less than 13% of landholders globally. If women obtain the same amount of land, technology and capital as men, there could be an estimated 30% increase in food production. In this way, empowering women could help to substantially reduce world hunger. On the more industrial side, studies show that both efficiency and organization significantly increase when three or more women enter senior positions at companies.

A Better Society For All

Decreasing the wage gap begins in three main areas: women’s unpaid work, education and health. When women in developing countries receive aid and money, the aid does not stop at just the direct beneficiary. Women are likely to extend the benefits to those around them; women tend to invest their earned money into their children’s education and health as well as their own. Giving women financial tools has economic gain for all and promotes economic justice.

The best way to ensure a fair economy is to invest in women, particularly in developing countries. Women should have the opportunity to work the same jobs, receive the same qualifications and have the same economic opportunities as men. Society’s way forward is through taking advantage of the benefits of investing in women.

– Becca Blanke
Photo: Flickr

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A New Proposed Bill to End the Gender Pay Gap in the EU

A New Proposed Bill to End the Gender Pay Gap in the EUIn March 2021, a new law was proposed to end the gender pay gap in the European Union (EU). This bill, written during COVID-19, aims to give more power to job candidates and to employees, especially women. Pushed by the European Commission, this proposed bill is great news for gender equality and women’s empowerment.

Gender Pay Gap in the EU

The gender pay gap is the average difference in salaries between men and women. It is a central social and economic issue affecting all EU countries.

The EU consists of 27 member countries. In 2019, all 27 countries showed differences between men’s and women’s hourly incomes with an average of a 14.1% pay gap.

These statistics also highlight gender pay gap differences between EU countries. For instance, Estonia presented a 21.7% gender pay gap — the highest gender pay gap rate in Europe. On the other hand, the top three countries each showed less than 5% pay gap: Italy showed 4.7%, Romania 3.3% and Luxembourg 1.3%.

Making Equality a Priority

These significant differences within the European members underscore the need for the EU to achieve unified and equal salaries between men and women. Although EU countries acknowledge inequalities in salaries, the gender pay gap rate has only minimally improved. The difference between men’s and women’s salaries has decreased by only a point between 2016 and 2019.

Not only will achieving gender wage equality make European societies fairer, but it can also improve their economies. In 2018, French President Emmanuel Macron stated that gender equality makes companies more competitive and productive.

In March 2021, the European Commission proposed a law addressing the gender pay gap issue in Europe. The bill relied on the “equal pay for equal job” principle and would be based on a system of fines for companies that do not respect gender pay equality.

Toward Transparency and Equality

In addition to penalties, the law would require companies to be more transparent about gender pay gaps. Increasing transparency would enable women to acknowledge discrimination and provide them with the information and tools to defend themselves against these inequalities and consequently empower women.

Transparency is a key point of the European bill to end the gender pay gap. It also requires the implementation of strict legal frames. Additionally, the proposed law considers the use of reports and audits, which are both parts of the right to information and can underline potential gender-based discriminations.

Gender Pay Inequality: A Multi-faceted Issue

It remains crucial to tackle invisible facts undermining women’s chances on the job market. For instance, the bill must consider the inequalities in unpaid activities mostly handled by women, like domestic chores or care work. Before COVID-19, women performed on average three times more unpaid work than men. During the pandemic, these numbers increased, especially because more women lost their jobs than men.

The inconsistency of women’s jobs is also crucial. For instance, in 2019, 29% of the gender pay gap in France’s culture-related jobs was due to the gap between full-time and part-time jobs for men and women.

The current pandemic has also underlined significant inequalities in women’s employment situations. During the coronavirus pandemic, a majority of front-line workers were women.

Equal pay between men and women represents a fundamental value of the EU. The “Equal Pay for Equal Work” principle was part of the foundation of the European Economic Community (EEC) in 1957. However, the gender pay gap remains a complex and systemic problem embedded in European institutions. The law proposed by the European Commission in March 2021 is an essential step toward ending gender-based discrimination on an international level. Closing the gender pay gap in the EU will, in turn, reduce inequalities and increase overall economic productivity.

– Soizic Lecocq
Photo: Flickr

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Why Women are More Likely to Live in Poverty

Women Are More LikelyGlobally, women are faced with the invisible burdens of gender inequality which are entrenched deeply within institutional structures and communities as a whole. These prejudices may limit a woman’s access to higher employment and assistance programs, ultimately leading to higher rates of poverty, especially among women of color. As of 2018, the poverty rate for women was 12.9% compared to the 10.6% rate among men. There are several reasons why women are more likely to live in poverty.

Educational Inequalities

In many developing countries, women are more likely to be denied an education, as nearly 25% of all girls have not completed primary school education and two-thirds of women make up the world’s illiteracy rate. In Somalia, for example, only 7% of girls are enrolled in primary school. The lack of education among women may result in higher pregnancy and poverty rates. According to the United Nations Girls’ Education Initiative, a girl’s education is a driving force in their economic well-being. Somalia suffers from one of the world’s worst educational systems and is one of the poorest countries as well, having a poverty rate of 73%. With education, females can increase their access to higher-paying jobs, and thus, benefit the family’s income., which results in a positive cycle for generations, bettering the economy overall.

Women Are Paid Less

Despite having the same qualifications and working the same hours, women are more likely to get paid less than men. Worldwide, women earn nearly 20% less than men. These variances within wages affect women in low-paying jobs and poorer countries dramatically. Closing the gender wage gap can result in overall equal income distribution. In the United States alone, closing the wage gap would mean that half the poverty rate of working women and their families would be cut.

Period Poverty

Around the world, many females may suffer from period poverty: inadequate access to hygienic menstrual products and menstrual education. The lack of education is related to the stigma periods carry. Periods have been associated with immense shame for a long time and this stigma is carried throughout communities, deeply limiting girls’ opportunities. Globally, periods are the reason why girls are absent from school at a disproportionate rate, as two out of three girls in developing countries are skipping school during their period. In India, 23 million menstruating girls drop out of school annually because of a shortage in hygienic wash facilities and products. Without an education, females are less likely to obtain a high-paying job and escape poverty.

Domestic Violence and Sexual Exploitation

One in three females globally fall victim to some form of domestic or sexual violence in their lifetime. Girls and women who grow up in poverty are also at an increased risk of experiencing such crimes. Victims of domestic or sexual violence can be impacted through the degradation of their physical or mental health, loss of employment or are ultimately driven into homelessness. Globally, females lose out on nearly eight million days of employment every year as a direct result of violent acts committed against them. According to a survey by the U.S. Conference of Mayors, domestic violence was the root cause of women becoming homeless in half of all the cities surveyed.

Pregnancy

Economically, females are potentially burdened with the costs of pregnancy, including the additional fees of caring for a child, more significantly than men. Custodial mothers are twice as likely to be poor compared to custodial fathers. Further, unplanned pregnancies can be detrimental to a woman’s income as being unable to work immediately after giving birth means no pay, especially in the informal working sector. In the developing world, nearly 12 million girls aged 15-19 give birth each year, which often results in the end of the girls’ education and the beginning of child marriage. Children who are born from early pregnancies or marriages more often than not enter the same cycle of poverty and no education.

Organizations for Female Empowerment

Malala Yousafzai started the Malala Fund after members of the Pakistani Taliban shot her for advocating the right for girls to be educated. Since then, Malala has built her project into a global initiative that furthers the goal of providing free quality education to young girls in developing countries.

The Orchid Project is a global initiative to end female genital mutilation (FGM). The Orchid Project functions as a platform that raises awareness of the areas where FGM is most prevalent and advocates against the practice. The Orchid Project has brought together more than 193 countries with the collective goal of abolishing FGC by 2030.

Women for Women is an NGO that works to aid those who are in hostile conflict zones and are the victims of collateral damage. Women for Women helps to uplift these victims of violence by providing them with tools, support and education so that they may earn a living and remain stable through the direst of circumstances. Women for Women has helped more than half a million women in countries that have been directly impacted by war and conflicts.

Empowering Women Means Reducing Global Poverty

Females in developing countries experience complexities that restrict their development and progression. Organizations are helping to raise awareness of these complexities and aid women in need. Since women are more likely to experience inequalities that push them into poverty, empowering women ultimately means alleviating global poverty.

– Maya Falach
Photo: Flickr

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Why Is Trinidad and Tobago Poor?

Why Is Trinidad and Tobago PoorThe island nation of Trinidad and Tobago lies in the Caribbean Ocean off the coast of Venezuela. Built primarily around the oil and gas industries, Trinidad and Tobago‘s economy is one of the strongest in the Caribbean. Despite this, several factors have led to economic stagnation as well as relatively prevalent poverty. So, why is Trinidad and Tobago poor?

A lack of economic diversification and overdependence on petroleum and natural gas are some of the most important factors holding back Trinidad and Tobago‘s economy. With oil and gas constituting 80 percent of exports and about 40 percent of the gross domestic product (GDP), the island nation has clearly devoted much of its economy to the sale and manufacturing of these natural resources. This leads to several problems.

Oil and gas prices have been in an overall decline over the past several years, so Trinidad and Tobago’s economy has suffered from job loss, reduced tax revenue and reduced development in human capital. These natural resources are also nonrenewable, meaning that they will eventually run out. Trinidad and Tobago’s government has done little to ensure that the country is ready to expand its economy beyond oil and gas once the underground reserves run dry. The overall lack of a business environment to stimulate entrepreneurs is one of the main answers to the question of why Trinidad and Tobago is poor.

Furthermore, the non-energy areas of the economy remain severely underdeveloped and continue to heavily depend on government subsidies. This lack of economic success in non-energy areas discourages potential foreign investors from investing in Trinidad and Tobago, despite the oil and gas sector’s success. Direct foreign investment is undeniably crucial for a country seeking economic diversification, as the inflow of money can help build a strong foundation for new sectors in the economy.

According to a review conducted by the Commonwealth Foundation, a nonpartisan think tank focused on public policy, over 20 percent of Trinidad and Tobago’s citizens currently live below the poverty line. The report also states that 11 percent of the population is undernourished. These unexpectedly high rates of poverty and malnutrition may be partly due to the considerable gender-wage gap present in Trinidad and Tobago.

A study conducted by the Central Bank of Trinidad and Tobago shows that women, on average, earn a staggering 35.3 percent less than men. While this may be partially due to a large portion of women taking low-income jobs, there is certainly a serious amount of gender-based discrimination in wages. It is easy to fall into complacency after the increase in the average woman’s wage – from $9,000 in 2012 to $12,000 in 2014. Despite this rise in pay, however, the wage gap has only been increasing. The average male wage was $18,000 in 2012, but has disproportionately increased to $30,000 in 2014.

Another issue presented by the gender-wage gap affects families with single parents. In Trinidad and Tobago, the children of single parents are six times more likely to live under the poverty line. With about 75 percent of single families headed by the mother, the issue of the gender-wage gap becomes truly alarming. It is illogical to expect single mothers to not only care for her children but also provide for them if she is working for significantly reduced wages and has no supplemental income.

This economic disparity between men and women has led to efforts in increasing the resources dedicated to educating and training women. With the number of women in the workforce steadily increasing over the past few years, women in Trinidad and Tobago have definitely seen improvements in their social and economic standing. Nevertheless, there is still much progress to be made. Passing legislation to eliminate the wage gap would be a substantial step toward promoting economic success in Trinidad and Tobago, in addition to the inherent benefits of working toward gender equality.

Answering the question “Why is Trinidad and Tobago poor?” requires a more convoluted response than expected. The nation of Trinidad and Tobago is undoubtedly one of the wealthiest countries in the Caribbean despite its deeply embedded economic flaws. While the country has made impressive progress by developing social programs to help the vulnerable, nurturing new businesses to encourage private sector growth and eradicating the gender-wage gap must be near the top of Trinidad and Tobago’s priorities for there to be long-term economic improvement.

– Akhil Reddy

Photo: Flickr

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